JASCO ELECTRONICS HOLDINGS LIMITED - Trading Statement

Trading Statement

JASCO ELECTRONICS HOLDINGS LIMITED
Incorporated in the Republic of South Africa
Registration Number 1987/003293/06
Share code: JSC     ISIN: ZAE000003794
(“Jasco” or “the company” or “the group”)

TRADING STATEMENT

Jasco’s 45th year was no less challenging than the preceding
year, with the ongoing impact of the COVID-19 restrictions on
the group’s operations and market.

During these volatile times, the board and executive team
continued to address a number of pressing issues facing the
group. The priority was to continue to restore stability to the
organisation and put Jasco back on a path of consistent
profitability.

The group significantly restructured its operational businesses
during the first half of the year. The new structure came into
effect from 1 November 2020. The progress made so far is
pleasing, which resulted in R48 million annual costs being cut
and an operating structure that is closely aligned to the group’s
target markets and customers.

The once-off items in the June 2021 financial year included:

  1. Profits on disposal related to the Reflex Solutions &
     Property Technology Management transactions completed in
     April 2021 and June 2021 respectively
  2. Goodwill impairments in Jasco Power
  3. Retrenchment costs on further organisational restructure

For the year ended 30 June 2021, the group expects:
  •   An earnings per share (“EPS”) of 2.88 cents earnings per
      share compared to a -49.4 cents loss per share for the
      previous corresponding period (an expected increase in
      excess of 100%).
  •   A headline earnings per share (“HEPS”) loss of -0.60 cents
      per share, compared to the -43.0 cents loss per share for
      the previous corresponding period (an expected increase of
      98.6%).
The prior year HEPS of -43.0 cents loss per share has been
restated from the previously published -44.5 cents loss per share
(decrease of 3.4%), to include the adjustment for the impairment
of intangible assets that was erroneously excluded from the HEPS
calculation in the prior year.
The weighted average number of shares in issue for the period of
224 446 129 were unchanged.

The group breached its debt covenants on the corporate bond and
the working capital loan from the Bank of China. This, together
with the maturity dates falling within 12 months at the financial
year-end, resulted in the loans being recorded as current
liabilities at 30 June 2021. The corporate bondholder and the
Bank of China have condoned the breach of the loan covenants at
30 June 2021 subsequent to the financial year-end. Jasco is
negotiating the restructure of the group’s borrowings and an
extension of the working capital loan with the Bank of China.
The board also approved a capital raise of R55 million, in the
form of a rights offer partly underwritten by a key shareholder,
which is expected to be concluded before the end of December
2021. This will fund future growth and improve the gearing ratio
through further debt reduction.

The information in this trading statement has not been reviewed
or reported on by the company’s external auditors.

Shareholders are further advised that Jasco’s audited annual
results for the year ended 30 June 2021 will be announced as
soon as possible.


Midrand
28 October 2021


Sponsor
Grindrod Bank Limited

Date: 28-10-2021 05:20:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.